The property buying specialist surveyed over 600 UK estate agents to find out how they feel professionally about the current state of the market, what they see on the ground from a buyer’s and seller’s perspective and how they proceed with market uncertainty at a high level.
The results show that 55% of agents are worried about the current outlook for the UK property market, with just 11% saying they are still confident for the months ahead.
Additionally, 26% think we are very likely to see a major market crash over the next few months, with a further 37% predicting that there will be at least some decline in house prices, while 27% predict that real estate prices will stagnate.
32% said they saw a slight drop in door-to-door seller activity, with 10% seeing a greater reduction in seller activity. However, 24% said business had increased.
27% also revealed that buyer demand for the homes they were selling had remained robust, although 42% saw levels of buyer demand starting to fall, with a further 43% saying buyers were also offering less compared to high pandemic home prices of the past two years.
As a result, 41% said they now advise sellers to adjust their asking price expectations based on homebuyers’ declining purchasing power.
With tough times ahead, it’s no surprise that just 12% said they would lower their fees in the next few months, even in an effort to win more business.
When it comes to how long agents think these difficult times will last, 33% think the market is on the verge of a long-term period of adjustment, which will last beyond next year. 41% believe this will be a medium-term correction that will last through next year, and 26% hope to return to the status quo by the new year.
Chris Hodgkinson, Managing Director of House Buyer Bureau, commented: “The market is holding strong at the moment, but the broadest expectation among those on the ground is that a correction is underway in one form or another.
“We are already starting to see the first signs of this correction with a good proportion of agents already noticing a drop in buyer and seller activity, as well as a reduction in high pandemic house prices that buyers are willing to pay.
“With many also fearing a period of long-term subdued activity in the market, it certainly looks like the sector will have a tougher year in 2023.”
